NZSX50 - Good News!

[Bjauck]

IT IS A NEW RECORD

And it will be another record when it get to 6000 by Xmas

Literally it is a record but I consider it is really a clayton's record.

Still, using a gross index instead of a net one has worked for the NZX as many commentators when comparing markets around the world fall into the trap of comparing the NZ gross index with the net indices used elsewhere. It makes NZ performance appear better than reality. The reason given for using a gross index, that NZ dividend rates are higher than elsewhere, is perhaps spurious given the mix of companies on the NZX and risk premium required for the NZ small commodities driven economy.

I wonder how the NZ market compares to pre-1987 crash...

[winner69]

Lister has actually stuffed up the numbers in his table in that article.

The 2009 trough was actually 2444 and not 1444 in the table

The current level is thus 106% higher than this trough - not the 248% in his table.

Seeing he looks so young I wil forgive him. Probably still at uni when it hit 2444 so suffered no pain ....the danger of only knowing markets that only on up.

If there is a point in the article it is that capital returns since 2009 have been about 70% while gross returns have been 106%.
.
A fair chunk of the difference is the effect of reinvesting dividends So sitting back and putting the dividends back into the market gives you superior returns, rather than just needing them to live on or a bit of extra spending money.

That is why the chances are that the likes of Snoopy makes more than most out of the market. I was going to include Birmanmboy but he says he needs his divies to live on.

[winner69]

Literally it is a record but I consider it is really a clayton's record.

Still, using a gross index instead of a net one has worked for the NZX as many commentators when comparing markets around the world fall into the trap of comparing the NZ gross index with the net indices used elsewhere. It makes NZ performance appear better than reality. The reason given for using a gross index, that NZ dividend rates are higher than elsewhere, is perhaps spurious given the mix of companies on the NZX and risk premium required for the NZ small commodities driven economy.

I wonder how the NZ market compares to pre-1987 crash...

Gaynor had a bit a while ago .....we are miles away from even getting near the 87 high

[winner69]

Christmas calls already again eh Winner? Hope you're right for once this year

Blown past 5100 .....next 5200 and then 5500 by Easter and then 6000 by Xmas

That is what happens to rock star economies

[Bjauck]

And gross indexes with XRO in it going global ...

Can anyone work out how much of the NZ50 growth since XRO's inclusion last year is due to XRO?

[Leftfield]

Gaynor had a bit a while ago .....we are miles away from even getting near the 87 high

Can anyone recall what the 87 high was?

[SimonHouse]

Seeing he looks so young I wil forgive him. Probably still at uni when it hit 2444 so suffered no pain ....the danger of only knowing markets that only on up.

That Lister looks VERY young. Do Craigs have an army of highly gifted toddlers running their business?

I jest of course. He is probably a very good manager of money.

[winner69]

Can anyone work out how much of the NZ50 growth since XRO's inclusion last year is due to XRO?

Brighton Early will have that his fingertips

He'll tell us shortly I'm sure

[Jay]

I thought BE had left or been exited from the building

[winner69]

I thought BE had left or been exited from the building

That's right - he got deleted the same day as Sparky

Maybe they were the same person.

Anybody know the weighting XRO has in nzx50?